Section8 Requirements
I am a newbie trying to get a home in Baltimore and do cosmetic renovation on it after which I plan on renting it out to a section8 (housing voucher) renter. Does anybody know what the process entails. I need complete information on the process.
Hi,
Suggest you start at this site http://www.baltimorehousing.org/index/home.asp
You can contact the office & have them send you a copy of their building standards and rent amounts. Once you have a lease with a section 8 tenant, they will come out & inspect the property & certify the lease.
Make sure your house is properly registered with the city.
Hope this helps,
Eric
Thank you very much, I appreciate it. I take it you have leased your house to section 8 tenants, what are the pros and cons of the everyday property management of such a tenant?
People are people, some are good and some are bad regardless of section 8 or not. I recommend getting to know their case worker and whenever possible circulate money back to them. I hired one of our tenants to clean the gutters. He did a great job and was greatful for the money. I may hire him to do some painting.
Eric
Quote:
On 2006-09-29 10:40, enaohwo1 wrote:
Thank you very much, I appreciate it. I take it you have leased your house to section 8 tenants, what are the pros and cons of the everyday property management of such a tenant?
How does getting to know their case worker help you as regards property management of a house rented to a section 8 tenant?
Also how has you experience with the section8 tenant you paid to paint changed since then?
It is always good to get to know the person who actually authorizes the check. I have headed off potential problems by a quick phone call or email. My As for the gutter cleaning, it gave the tenant a sense of ownership..always good for business.
Quote:
On 2006-09-30 14:59, enaohwo1 wrote:
How does getting to know their case worker help you as regards property management of a house rented to a section 8 tenant?
Also how has you experience with the section8 tenant you paid to paint changed since then?
Thank you very much for your feedback. Can you tell me in detail what problems were averted by the fact that you know the case worker. Saying potential problems is kind of broad.
I know see how getting to know the case worker is a benefit. In the end, you got the tenant to stay and still had enough time to get someone else. hmmm, interesting
Any comments and or suggestions will be great! Thanks guys
thanks alot for the reply,is the minimal on a contract $100 all the time of does it differ?
Would it be better to find buyers first then look to properties or find the property then look for buyers?
You can do it either way. I think it is better to know your buyers, know what your buyers are looking for, and know what discount to market value your buyers will demand.
Then when you find a property, you will know exactly how much you can contract for and still have enough room in the deal for your assignment fee.
Oh ok i see what your saying.So for example if a wholesaler wants houses for $200,000 and i find a house for $160,000 + $30,000 in repairs that leaves me $10,000 for an assignment fee,correct?
It is a little more involved, but yeah. You have to know how much "equity" your buyers will want to see in the property after repairs.
For example, you find a distressed property that you can purchase for $45K. It needs $25K in rehab to make it retail ready. The probable appraised value after repair needs to be high enough to leave enough profit in the deal for the investor who buys from you.
If the after repaired value (ARV) of this property will only be $75K, then there is not enough margin in the deal to interest anyone on your buyers list. If the ARV is $100K, then a $3000 assignment fee will still leave $27K on the table for your buyer. Out of this $27K, your buyer assumes the risk of rehab cost overruns, holding costs while the property is being rehabbed and marketed for sale, plus the selling costs.
A lot of things can eat up a small profit margin quickly, so you need to leave enough potential profit in the deal to make it attractive to your buyers.
Some of your buyers will demand a minimum dollar amount while others will want a certain percentage in potential profit. If goes a lot smoother for you if you know what your buyers will need to get out of a deal before you structure an offer to a seller.
Is ther a certain formula to determine how much to charge an assignment fee?